Content Options

View Options

Status: You are viewing the version of the handbook as on 2005-06-30.

AUTH App 1.25 Advice must relate to an investment which is a security or contractually based investment

AUTH App 1.25.1G

For the purposes of section 53 of the Regulated Activities Order, a security or relevant investment is any one of the following:1

  1. (1)

    shares;

  2. (2)

    debentures;

  3. (3)

    government and public securities;

  4. (4)

    warrants;

  5. (5)

    certificates representing certain securities;

  6. (6)

    units in collective investment schemes;

  7. (7)

    stakeholder pension schemes;

  8. (8)

    options;

  9. (9)

    futures;

  10. (10)

    contracts for differences;

  11. (11)

    contracts of insurance;1

  12. (12)

    funeral plan contracts (with effect from 1 January 2002);

  13. (13)

    rights to or interests in such investments.

AUTH App 1.25.2G

Article 53 does not apply to advice given on any of the following:

  1. (1)

    deposit or other bank or building society accounts;

  2. (2)

    interests under the trusts of an occupational pension scheme (but rights under an occupational pension scheme that is a stakeholder pension scheme will be securities).1

  3. (3)

    mortgages or other loans; (but note that advising on regulated mortgage contracts is a separate regulated activity under Article 53A of the Regulated Activities Order - see the guidance in AUTH App 4 (Regulated activities connected with mortgages));1

  4. (4)

    National Savings products;

  5. (5)

    foreign exchange (or cash);

  6. (6)

    commodities (for example, gold);

  7. (7)

    real estate;

  8. (8)

    any other physical property capable of having investment potential (for example, works of art, racehorses) unless investment is made through a collective investment scheme;

  9. (9)

    1[deleted]